Union Bank of India Board Approves ₹8,000 Crore Capital Raising Plan

Mumbai: Union Bank of India has approved a capital raising plan of up to ₹8,000 crore to strengthen its capital base and support future business growth.

The decision was approved during the Board of Directors meeting held on 26 May 2026, according to the bank’s regulatory filing under SEBI (LODR) Regulations, 2015.

Details of the Capital Raising Plan

The approved fundraising programme includes a combination of equity capital issuance and Basel III compliant bond issuances.

1. Equity Capital Raising – Up to ₹3,000 Crore

The bank may raise up to ₹3,000 crore through one or more of the following methods:

• Further Public Offer (FPO)

• Rights Issue

• Qualified Institutional Placement (QIP)

• Preferential Allotment

• Private Placement

• Combination of multiple fundraising modes

The issuance will be subject to approvals from:

• Government of India

• Regulatory authorities

• Shareholders of the bank

2. Basel III Bonds – Up to ₹5,000 Crore

The Board also approved raising up to ₹5,000 crore through:

• Additional Tier 1 (AT1) Bonds

• Tier 2 Bonds

• Foreign currency denominated Basel III compliant bonds

The bond issuance will remain within the overall fundraising ceiling of ₹8,000 crore.

Objective Behind the Fundraising

The proposed capital infusion is aimed at:

• Strengthening the bank’s capital adequacy ratios

• Supporting credit growth

• Enhancing lending capacity

• Meeting regulatory capital requirements under Basel III norms

The move is expected to provide financial flexibility as the banking sector witnesses rising credit demand and expanding infrastructure financing opportunities.

Board Meeting Details

According to the filing, the Board meeting commenced at 11:00 AM and concluded at 2:00 PM on 26 May 2026.

About Union Bank of India

Union Bank of India is one of India’s leading public sector banks offering retail, corporate, treasury, and digital banking services across domestic and international markets.